Tag: consumer law

Fragrances and fragrance ingredients – suspected anti-competitive conduct

First published by Author on May 03, 2023 in the following categories: Consumer Law Industry Investigations Latest and tagged with cma | competition law | consumer law | investigations

The CMA has confirmed that it has launched an investigation into suspected anti-competitive conduct relating to the fragrances and fragrance ingredients sector.

The CMA launched its investigation in March 2022, so we are only at the very beginning of the UK competition regulator and watchdog looking into what may or may not have happened. The CMA has confirmed that it has reason to believe that such behaviour may be taking place, and they are also liaising with international partners in respect of the investigation.

If any breaches of the Competition Act are established, this would constitute a serious matter that will need to be dealt with, and the CMA may wish to issue fines and prosecutions.

Unit pricing in the groceries sector: CMA project

The CMA has launched a project to look at the unit pricing in the grocery sector which, I think we can all agree, is a particularly important matter given the ongoing cost-of-living crisis.

The CMA has published its announcement in respect of the project recently, so we are very much in the early stages of this particular one. The matter also follows a previous Super Complaint in respect of the complexities and issues that could have been impeding the ability of consumers to make informed choices in respect of price comparison.

Read on for a little bit of information about this latest CMA project. I think we can all agree it is one to watch given that we are all feeling the pinch at the moment.

Old and written-off vehicles – suspected anti-competitive conduct

First published by Author on February 01, 2023 in the following categories: Consumer Law Industry Latest and tagged with cma | competition law | consumer law | investigations | market study

The CMA (Competition and Markets Authority) is looking into suspected anti-competitive conduct in relation to old and written-off vehicles in the UK.

The investigation began approximately a year ago, and we will outline an update that has already been published by the CMA at the end of last year in respect of a penalty notice that has been issued.

The car industry is massive, and there have been a number of scandals that it has been involved in in recent years, and it can be somewhat of a murky area in terms of consumer confidence. The CMA’s work in identifying if there have been any breaches of competition law is incredibly important. If any breaches are established, swift and effective action could be taken.

Social media endorsements – CMA investigations

For several years, the CMA has been investigating social media endorsements to make sure that vital competition and consumer laws in the UK and not being broken.

Given the prevalence of social media, particularly in respect of it being used for marketing and advertising these days, it is vital that people know when they are seeing advertisements and products and services being pushed for recompense by influences. There have been many questions as to whether it has been clear enough that people know they are being advertised to as opposed to simply being recommended a product, which is the real focus of the CMA investigation.

Private healthcare market competition investigation

The private healthcare market investigation that has been ongoing for over a decade is a matter that has seen a recent update published by the UK’s CMA, the Competition and Markets Authority.

Private healthcare is a particularly sensitive industry in relation to competition law, and it is one that must be monitored carefully to make sure that patients – i.e. consumers – can make the best choices for them. In this latest update from the CMA, it has been suggested that there is still much more work that needs to be done.

Suspected unfair pricing investigations

It is important for the CMA to look into incidents of suspected unfair pricing to ensure that consumers are not being overcharged and taken advantage of.

This can particularly be the case in relation to medication costs of which the CMA has looked into a number of issues about the NHS being overcharged, and we will provide an update of an example in this article.

Broadly speaking, it is important that pricing is set at fair levels and that companies are not taking advantage of consumers to drive their profits up in an obscene manner. At the same time, competition must be required to allow pricing to be set competitively as well.

Competition law in sports: CVC Capital and Six Nations Rugby

First published by Author on September 04, 2022 in the following categories: Acquisitions Industry Investigations Mergers and tagged with cma | competition law | consumer law | investigations

In March 2021, it was announced that CVC Capital and Six Nations Rugby had come to deal on a 14.3% stake in the Six Nations, for which it reportedly paid a huge £365 million. However, in the wake of this proposed agreement, the Competition and Markets Authority (CMA) saw fit to begin an investigation into whether or not the merger would provoke a decrease in competition within the market.

When major deals occur in any sector, it is natural and routine for the CMA to look into any potential changes to competition which may be caused, so the fact that a CMA investigation was triggered does not necessarily confirm that a breach of competition law has occurred, or that any action will be taken against the organisation under investigation. Such was the case for the CVC Capital deal, which was cleared by the CMA in July.

Nevertheless, it is worth considering why the CMA made the decision to investigate and how it came to its decision, as cases like this can give a valuable insight into how the competition regulator operates in the UK. It is also useful to look at cases like this from the perspective of competition law in sport.

CMA investigates fake online reviews on Amazon and Google sites

The Competition and Markets Authority (CMA) previously announced that it had begun an investigation into potentially fake online reviews which may exist on major websites and online marketplaces. It is understood that there may be concerns that businesses are not doing enough to monitor and take down misleading reviews, and that some could be benefiting from them.

Since the birth of online shopping, consumers have been afforded a huge breadth of choice when buying products or services, and all in an easy way. However, the internet also comes with risks for consumers, with many scammers and disreputable businesses trying to take advantage of the faceless nature of online shopping, hiding behind a screen as they attempt to convince unsuspecting consumers to make purchases.

The existence of fake online reviews is one of the major downsides to online shopping, posing a difficulty for consumers as authenticity can often be hard to assess accurately. It is, therefore, important that businesses appropriately oversee online reviews and remove the fake ones, or they could be unfairly profiting from the deception of customers.

Electronic drum sector appeal denied by Competition Appeal Tribunal

First published by Author on April 06, 2022 in the following categories: Consumer Law Industry Investigations and tagged with cma | competition law | consumer law | investigations | musical instruments

Following an investigation by the Competition and Markets Authority (CMA) into alleged anti-competitive practices in the electronic drum sector, the Competition Appeal Tribunal previously rejected an appeal made by musical instrument company Roland. Roland had reportedly taken issue with the nature of a fine that it had previously agreed to pay.

As part of the settlement of the CMA case, Roland had been fined £4m for reportedly breaching competition law. As a result of the failed appeal and Roland’s reported breach of the settlement bargain, the fine was understood to have been increased to £5m.

The judgement made by the Competition Appeal Tribunal (CAT) showed it is not inclined to be lenient towards companies found guilty of breaking competition law. As advocates of consumer rights and fair business, we believe it is vital that organisations are punished accordingly if they break the law, and the CMA’s fines can have a powerful dissuasive effect on companies upon which they are imposed, and on companies in general. The upheld decision in the electronic drum sector case seems to be, therefore, a positive move by the CMA.

Energy licence modification appeals

First published by Author on March 02, 2022 in the following categories: Consumer Law Industry Investigations and tagged with cma | competition law | consumer law | investigations

Last year in March 2021, nine companies appealed to the Competition and Markets Authority (CMA) against Ofgem’s changes to energy licences. A price control decision made by Ofgem in December in the previous year resulted in changes to the prices that energy companies could charge to customers. As the energy licence modification appeals progressed, permission to appeal was granted and hearings were set for later in the 2021 period.

This case was not the first time Ofgem’s policy changes have been met with opposition from energy companies, with several energy companies participating in another appeal against the gas and electricity regulator, which concerns its changes to transmission charges.

As the competition regulator, the CMA can give a final decision on the energy license modification appeals once all matters have been considered. A final order was subsequently published at the end of last year, and you can read the relevant information and outcomes here.